A cost‐benefit evaluation framework of an electronic‐based traceability system

Purpose The concept of “traceability as a strategy and mandatory initiative” has replaced that of “traceability as a cost of a business or as a voluntary responsibility”. This implies that the introduction of a traceability system should be perceived and positioned as a catalyst for better business practices. However, despite these benefits, a traceability system is also investment‐worthy. Hence, the value of investment in a traceability system constitutes a matter of considerable concern and debate for both practitioners and academics alike. This paper seeks to present a cost‐benefit evaluation applied in a natural mineral water company regarding the pilot deployment of an electronic‐based traceability system. Design/methodology/approach This is a case based study. Findings Based on the experience described previously, a high‐level framework is generated that any organisation can refer to as a proper guideline in order to demonstrate how the costs and benefits can be compared for overall evaluation of the deployment of any traceability system. The details of the framework are described by applying it to a specific case. Practical implications The present framework has theoretical interest for replicability in a different number of food sectors. Originality/value The paper contributes to closing the existing gap regarding the theoretical approach that food traceability systems can adopt when their costs and benefits are investigated.